Copyright 2007 by Prentice Hall Chapter 10: The Family and Its Social Class Standing MKT 344 Faculty: NNA Copyright 2007 by Prentice Hall

Chapter Outline What Is a Group? Categories of Reference Groups Selected Consumer-Related Reference Groups Reference Group Appeals The Changing U.S. Family Consumer Socialization Family Decision Making The Family Life Cycle

Reference Groups Influence Normative influence: learning and adopting a group’s norms, values, and behaviors. Reference groups influencing broadly defined value. i.e. Family Symbolic group: a group to which an individual is unlikely to belong, but whose values and behaviors that person adopts

Reference Groups Influence Comparative influence: arises when people compare themselves with others whom they respect and admire. Reference group serving as benchmarks for specific or narrowly defined attitude or behavior. i.e. upper level executive

Types of Reference Groups Membership group: the group to which a person belongs to, or realistically can join. A group where a person belongs to or would qualify for membership. i.e. NSUSS Friendship groups: a group of people, usually of similar age, background, and social status, with whom a person associates and who are likely to influence the person's beliefs and behavior.

Broad Categories of Reference Groups Groups include people who more realistically represent the individuals’ current equals or near-equals Associative Reference Groups group includes people that the individual would not like to belong to Dissociative Reference Group

Selected Consumer-Related Reference Groups Shopping groups Work groups: a group within a workforce that normally works together. Virtual groups or communities: individuals who work across time, space and organizational boundaries with links strengthened by webs of communication technology. Brand Communities

Reference Group Appeals Celebrities The expert The “common man” The executive and employee spokesperson Trade or spokes-characters

Nonfamily Households: Married couple, Nuclear family, Extended family Households Nonfamily Households: Unmarried couples, Friends/ Roommates

The Changing U.S. Family Increase in childless women More working mothers Changes in household spending patterns

Evidence of the Dynamic Nature of U.S. Households - Figure 10-7

Consumer Socialization The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.

A Simple Model of the Socialization Process - Figure 10.11

Table 10.7 Eight Roles in the Family Decision-Making Process DESCRIPTION Influencers Family member(s) who provide information to other members about a product or service Gatekeepers Family member(s) who control the flow of information about a product or service into the family Deciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Buyers Family member(s) who make the actual purchase of a particular product or service Users Family member(s) who use or consume a particular product or service Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction. Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

The Family Life Cycle Traditional Family Life Cycle Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Postparenthood Stage V: Dissolution

The Family Life Cycle Modifications - the Nontraditional FLC Child less couple Couples who marry later in life Couples who have first child later in life Single parents Extended family (kids return to parents to avoid expenses or after divorce) Unmarried couples

Chapter 13 Cross-Cultural Consumer Behavior: An International Perspective MKT 344 Lecturer: NNA

Country of Origin Effects: Negative and Positive Many consumers may take into consideration the country of origin of a product. Some consumers have animosity toward a country People’s Republic of China has some animosity to Japan Jewish consumers avoid German products New Zealand and Australian consumers boycott French products

Cross-Cultural Consumer Analysis The effort to determine to what extent the consumers of two or more nations are similar or different.

Cross-Cultural Consumer Analysis Issues Similarities and differences among people The greater the similarity between nations, the more feasible to use relatively similar marketing strategies Marketers often speak to the same “types” of consumers globally

Cross-Cultural Consumer Analysis Issues The growing global middle class Growing in Asia, South America, and Eastern Europe Marketers should focus on these markets

Cross-Cultural Consumer Analysis Issues The global teenage market There has been growth in an affluent global teenage and young adult market They appear to have similar interests, desires, and consumption behavior no matter where they live.

Cross-Cultural Consumer Analysis Issues Acculturation Marketers must learn everything that is relevant about the usage of their product and product categories in foreign countries